Nubank is laying the groundwork to conquer (hearts) in Colombia

Contxto – Entrepreneurs David Vélez, Cristina Junqueira, and Edward Wible launched fintech Nubank in Brazil in 2013. But it’s only reasonable for Vélez to hope to eventually bring the company he helped create to his native Colombia.

And evidence recently surfaced suggesting that it’s been quietly building towards that goal.

According to local media site, La República, challenger bank, Nubank, is laying down the groundwork to launch operations in Colombia.

Besides Brazil, the fintech launched into Mexico in May of 2019. Meanwhile, it announced it would launch into Argentina in June of last year. But thus far, it hasn’t released any products into that market yet.

If anything, it will first lay down ops and groundwork in Argentina before any big scaling announcements into a fourth country.

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Nubank’s next stop: Colombia?

Getting down into the details, just what’s making the media talk Nubank in Colombia?

While the startup hasn’t registered under a banking license with the Superintendency of Industry and Commerce (SIC)—a crucial step towards operating in the country—it has taken other measures.

For example, since 2019 it’s already registered the company as Nu Colombia SA. Related documentation also designates Vélez as the company’s appointed Country Manager. But that’s not all that was uncovered.

La República also states it spoke to two legal teams in Colombia who basically confirmed that they’re working with Nubank. Sources at one of these firms even confirmed that they’re helping the unicorn set up shop.

Nubank news

Besides raising an alleged US$300 million round, the unicorn recently acquired brokerage platform, Easynvest. With its purchase, it wants to add investment products to its current portfolio of goodies which include a credit card and digital account for making payments for its reported 30 million users in Brazil. 

Meanwhile in Mexico, the startup intends to continue focusing on its credit card, released in March of this year for what sounds like a long time.

“It is a very difficult product, which needs time, as the credit risk is very high [and] the risk of fraud is very high, as here in Brazil, ” said Vélez in an interview with Broadcast/Estadão.

Either way, with Brazil, Mexico, and eventually Argentina and Colombia covered, the unicorn will have a grip on the region’s four largest markets.

Once all that’s achieved, where do you think it shall go next? Or will it finally be time for a much-anticipated IPO?

Related articles: Tech and startups from Colombia!

-ML